Could real estate go the way of the travel industry? Not quite

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Technology has revolutionized how people book travel, buy groceries and manage their everyday finances. Yet, the process of buying a home has withstood many similar changes.

Sites like Redfin and Zillow provide a way for buyers and brokers to connect online, but the role of real estate agents in closing purchases has persisted. Now the seismic settlement between the National Association of Realtors and home sellers could change that, as home buyers and sellers face the prospect of paying their agents separately, instead of sellers paying a commission split between both sides.

Currently, the framework of real estate solely emphasizes the buy and sell transaction, said John Bodrozic, co-founder of HomeZada, a real estate tech company. Yet, as technology simplifies the process, agents will have to advertise their value as long-term consultants in a niche industry. Bodrozic said tech will enable real estate to become more like personal finance in this sense.

 

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